Red Chilli Prices to Rise on Festival Demand, Weak Rains

| Leave a Comment | Commodity

The prices of red chilli, India’s most exported single spice, are expected to rise again due to higher festive demand and weak rains in the coming weeks.

The average prices of red chilli have fallen from ₹250 per kg to around ₹230 per kg in recent weeks due to subdued export demand and accumulation of sufficient inventory to last till the arrival of the new crop by next January.

However, the prices are expected to rise again in the coming weeks due to the following factors:

  • Higher festive demand: The Dussehra festival season, which begins in October, is a major demand driver for red chilli.
  • Weak rains: The late setting in of the southwest monsoon and weak rains in the coming weeks could delay the arrival of the new crop by a month.
  • Pest infestation: Chilli crops are also vulnerable to pests such as black thrips, which could damage the crop and lead to higher prices.

The chilli crop is expected to be the same or slightly less than the previous season. However, a clear picture will emerge only by October as there is still time to transplant chilli from the nurseries to the fields.

The chilli industry is worth around ₹10,000 crore in India. The country is the world’s second-largest producer of red chilli after China.

The rising prices of red chilli could impact the prices of other food items, such as curries and pickles. It could also put pressure on the inflation rate.

The government is monitoring the situation and is taking steps to ensure that the prices of red chilli remain stable. These measures include increasing imports and providing financial assistance to farmers.


Related News

  • 14 Sep

    Oil Prices Rebound as Markets Focus on Tighter Supply Outlook

    Oil prices rebounded on September 14 as markets focused on tighter supply outlooks. The International Energy Agency (IEA) said that Saudi Arabia and Russia's extension of oil output cuts to the end of 2023 will mean a substantial market deficit through the fourth quarter. Gold prices also edged higher as investors anticipated a pause in interest rate hike at the US Federal Reserve's policy outcome on September 20.

  • 11 Sep

    Crude oil prices rise on supply concerns, but dollar strength weighs

    Crude oil prices rose 2% on Friday, supported by concerns about lower supplies from key producers. However, the strength of the US dollar, which reached a six-month high, weighed on the oil market. Investors will be closely monitoring upcoming data releases in the coming week for further clues about the direction of the commodities markets.

  • 11 Sep

    Global Financial Markets Under Pressure

    Global financial markets came under pressure last week as investors turned their attention to a number of key issues, including China's real estate troubles, the potential for more Fed rate hikes, and differing opinions on Europe's rate outlook. The US dollar index surged to a six-month high, while US treasury yields rose. Global equity markets fell, and oil prices rose. The upcoming week will bring a focus on US inflation figures, retail sales data, the ECB monetary policy meeting and a range of Chinese economic data releases. Investors should monitor these factors and adjust their investment strategies accordingly.

Leave a Reply

Your email address will not be published. Required fields are marked *